Settlement reached in Pilgrimís Pride investor lawsuit
Shareholders questioned the fairness of how the Pilgrimís Prideís acquisition of Moy Park from JBS was handled
October 7, 2019
A $42.5 million settlement has been reached, bringing an end to a lawsuit filed by shareholders that questioned the fairness of Pilgrimís Prideís 2017 acquisition of Moy Park from JBS.
The lawsuit was filed in the Court of Chancery of the State of Delaware. The plaintiffs claimed that because JBS controlled both Pilgrimís Pride and Moy Park, it must prove that the deal was entirely fair. JBS, according to the WATTAgNet Top Companies Database, owns a 78.5% stake in Pilgrimís Pride.
The acquisition was valued at $1.3 billion.
The lawsuit was initially filed by shareholder Matthew Sciabacucchi, a Law 360 report stated, and in the suit, it was claimed that the transaction had been vetted by a special committee that wasnít independent and did not seek input from the companyís minority shareholders. A subsequent suit filed by the Employeesí Retirement System of the City of St. Louis was consolidated with Sciabacucchiís suit.
The plaintiffs in the case alleged that JBS orchestrated a deal to sell Moy Park to Pilgrimís Pride because it needed to raise cash quickly after agreeing to pay a US$3.2 billion fine to the Brazilian government after former JBS Chairman Joesley Batista, and his brother, former JBS Chief Executive Officer Wesley Batista, admitted to bribing politicians...